tighter and exact spaces for some time. >> reporter: d.c. developer monty hoffman will soon be offering 100 compact apartments, 350 square feet a piece, on the city's southwest waterfront. he says the housing market is being driven by a new generation of buyers whose priorities have changed. >> they're more about experience than material things. they like their space but they like the street theater. the street, the cafes, those omcome our living room. housubois: for the tiny house lighbors, their living rooms will include a breathtaking view. >> we're worried about zombies creeping in a few times a year. the full moons are a bit frightening. >> reporter: washington housing codes don't yet allow people to live in the homes full time so for now, the group says, it's a showcase, a microscopic model of their american dream. >> i think people are starting to understand, you know, lower cost, affordable housing can be- - can be very livable. and maybe we don't need the big mcmansions that we've been living in. >> dubois: and just because they're small doesn't mean they're necessarily cheap.